The Legal Brief - 25th May 2022

The concept of “Buy now, pay later products” is to focus on allowing customers to delay their payments or split their payments into instalments without having to pay interest on the product.?This idea has been increasing more popular as a wide range of companies have started to offer it such as: Klarna, Zilch and even NatWest Bank. It is also offered by most clothing retailers as a payment option including, Boohoo, Pretty Little Thing and Asos.

This pioneering idea has changed the consumer finance idea by allowing people to pay back with interest-free instalments rather than paying a one-off payment. Buy now and pay later is easily accessible as it does not have serious credit scores and allows customers to gain a good credit score.

These companies make money in two ways: Firstly, the companies make a profit from the retailer rather than the customer. Secondly, the companies also make a profit from failed payments.

However, it has the potential to allow people to fall into debt as they are struggling to pay. As there is a lack of understanding in relation to the importance of paying the debt, often people can spend more than what they can afford leading them to not complete the repayments on time. This negatively impacts consumers’ credit rating later on for important things such as mortgages, especially for defaulting on trivial things, for example, clothing. Also, the companies are so easily accessible as the unregulated payment sector does not require hard credit checks. This makes it concerning as these companies often target young and vulnerable customers.

How to improve buy now, pay later?

There is a need to balance the positives and negatives of the buy now, pay later scheme. There should be some regulations in place to ensure there are proper affordability checks in place before granting finance?to every customer. The companies that offer BNPL should encourage the importance of not spending what people cannot afford.

Klarna has already put some rules and regulations in place to ensure the BNPL scheme is not risky for customers, nor is it accessible. They have begun to make it clear to customers that they are being offered credit as well as making customers aware that penalties are likely for missed payments. Klarna has also added a pay now option so people can pay when they have the money rather than waiting for their interest-free payments. They have also added tougher credit checks, so it is less accessible for people to use BNPL and less likely they will fall into debt.

Due to the increase in the living costs because of the COVID-19 pandemic, it is likely that in the future the Buy Now Pay Later sector is going to suffer. Therefore, it is questionable what will happen with this scheme.?

Written by Gabrielle Coates

A story that will be news to every feminist’s ears now, concerning the American sporting world.

In global commercial news this week was a ‘historical’ equal pay deal between men’s and women’s teams, following the announcement that US Soccer will be paying both national teams ‘identical economic terms.’ Undoubtedly this news is ground-breaking news for the sporting world, possessing the potential to ‘change the game forever,’ however this progressive move from the federation did not occur without a fight.

Following a legal battle between US Soccer and the US women’s team, a ‘first of their kind’ collective bargaining agreement was put forward of which is set to stay in place until the end of 2028. According to US Soccer, said agreement aims to ensure ‘identical economic terms’ for both the men’s and women’s teams through such initiatives as: identical appearance fees, sharing prize money from World Cups as an equal percentage and identical bonuses for both teams from other official competitions. Such arrangements will mean that the women’s national players no longer receive their regular guaranteed salaries, with those playing in the National Women’s Soccer League ceasing to ‘have their club salaries paid by US Soccer.’ Alongside the above, both teams shall be provided with venues of an equal quality, with players receiving a share in ticket sales revenue.

Undeniably this move will do wonders for women’s sport and the help progress the long standing fight of gender equality within the sporting world. US Soccer president Cindy Parlow Cone has described the move as a ‘truly historic moment,’ of which is already ‘changing the game forever in the United States,’ presenting the ‘potential to change the game around the world.’

Following the incredibly successful track record of the women’s international team, it is almost surprising that it has taken so long for the world number one team to achieve such recognition. Despite this, if one thing is for sure, this move made by US Soccer is only going to act as a catalyst for positive change within the sporting world all across the globe.

Written by Hebe Shepherd

Figures released this week by the International Energy Agency say that the cost of EV batteries will rise by 15% if metal prices persist at current levels, in news that could be very damaging to the rate on conversion to EVs by consumers.

EV batteries are already the most expensive part of the vehicle, accounting for the largest portion of production costs. This increase in raw material costs will further affect the production cost of each vehicle, driving EV prices yet further up.

As cost is a big factor behind consumers transitioning to EVs, and the predicted rise in popularity of these vehicles is being driven by an assumption that prices will fall, this news could come as a large blow to EV manufacturers and the dealer networks attached to them. If this is the case, and EV sales stall as a result of rising costs, the door would most certainly open up for other alternative fuel manufacturers, or for companies who currently produce more affordable cars.

You would think that the Dacia Spring, launched in France last year, and costing a mere ￡15,000 (approx.) could be quite popular under these conditions. It is speed limited, and has a comparatively low 140 mile range - but should city driving, or a small daily commute, be the only use for your vehicle, this could be a very attractive option.

The other manufactures that could be eyeing up this potential faltering in EV sales are those who see Hydrogen fuel cell cars as the way forward. These cars rely on the power created in a redox reaction, and are less susceptible to such production cost increases. It must be remembered these are also more recyclable, and so are already an attractive alternative to the comparatively un-recyclable EV batteries currently in use.

Written by Duncan Balcon

Wouldn’t it be great if contracts were in plain English hey… ???

Well, this week we went searching for answers to find out who is making this happen on our?Legally Speaking Podcast ???powered by?Clio - Cloud-Based Legal Technology!

For this we welcomed?Christoph Mlinarchik?to the show to find out more!

Christoph is a former US federal contracting officer, former director of?GovCon?for a US defense contractor and qualified expert witness. Christoph is also an attorney, consultant and instructor.

He has a wealth of experience negotiating, reviewing and managing billions of dollars, of government contracts over the course of his career.

In addition to this, Christoph is a bestselling author in government contracting and is a nationally recognised subject matter expert.

In this episode, we discuss the following:

?? The inspiration behind writing 3 bestselling books ‘The Government Contracts in Plain English’

?? What is a federal contracting officer is and what do they do

?? How he SHOCKED the government contracting community with his controversial statement

?? What do lawyers need to know to protect and guide their clients in relation to US federal contracts law

?? Tips on how attorneys can help their clients when negotiating the terms for federal subcontracts

?? Traps, tricks and dangers when negotiating subcontracts

?? Out now on the Legally Speaking Podcast website and all major audio platforms!

So…would you like to see more contracts in plain English?

Aviation Finance?- Global Law Firm - Junior Associate (London)

Capital Markets Associate?- Global Law Firm - 2 - 4??PQE (London)

Commercial IT Associate/Senior Associate?- Global Law Firm (London)

Commercial Litigation Associate x 2 (Trade/Commodities)?- Global Law Firm (London)

Corporate Associate & Senior Associate x 2?-?Global Law Firm (London)

Disputes Associate?- Global Law Firm - 4 - 5?PQE (London)

Finance Associate?- Global Law Firm 3 - 4?PQE (London)

Financial Regulatory Associate?- Global Law Firm 3 - 5?PQE (London)

M&A Associate?- Global Law Firm 2 - 4 PQE (London)

Marine Asset Finance?- Global Law Firm NQ – 3 years?PQE (London)

Marine Assets & Projects?(EMNR Group A)?- Global Law Firm

Professional & Finance Disputes Associate/Senior Associate?- Global Law Firm 2+ PQE (London)

Professional Indemnity Junior Associate/ Associate?- Global Law Firm (London)

Real Estate Disputes Associate?- Global Law Firm (London)

For further information, or to get your questions answered, please send a message to?Robert Hanna.

If you cannot see a job suitable for you, but are interested to hear about more jobs at KC Partners, please send your CV to?[email protected]?to be considered.

At KC Partners we are committed to promoting diversity and equality of opportunities across organisations and we welcome applications from suitable candidates regardless of race or racial group, religion or belief, age, disability, sexual orientation, sex, gender re-assignment and gender identity, marriage and civil partnership, and pregnancy, maternity and paternity.

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